Private equity targeting compliance companies
Deal-making in the broad, loosely defined GRC industry has been fairly constant over the past few years, as big companies snapped smaller companies to fill in product lines.
While the merger movement just recently seems to have waned just a bit, it appears now that private equity firms are starting to take an interest in "compliance services" companies, according to Corruption Currents.
"There has been a spate of these deals in recent weeks that illustrate the range of services now serving the corporate compliance function. Riverside Co., one of the most active investors in compliance-related companies, in January bought Alchemy Systems LP, a provider of workplace safety courses, and in November it bought Digital University Inc., a provider of bank compliance training, through its portfolio company OnCourse Learning Co. Riverside's main platform compliance company, Navex Global, was acquired in 2010 and has made several add-on deals since then," the article notes.
Of course, this isn't the sort of industry that's on the radar for the premiere private equity firms. Still, there's quite a bit of activity underway in this small-ish industry. Venture capital companies are also taking closer looks at promising start-ups. Lockpath may be the best recent example.
- here's the article